Tax cut billions fail to spur spending as CEOs safeguard profits

Matt Townsend and Brandon Kochkodin

12/21/2018

THE UNITED STATES' largest companies protected their profits following the 2017 tax cuts by using their savings to offset risings costs, including for labor, transportation and imports. / BLOOMBERG FILE PHOTO/ANDREW HARRER

NEW YORK - Critics of President Donald Trump’s tax law centerpiece - slashing the corporate rate - argued the savings wouldn’t spur big companies to expand dramatically. One year later, some key metrics show they were right. For companies in the Standard & Poor’s 500 Index, the profits they’ve made from sales this year through…

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